From Free Phones to Free Taxis, BYD and China Development Bank Offer Break-Through Financing on Electrified Public

  From Free Phones to Free Taxis, BYD and China Development Bank Offer
  Break-Through Financing on Electrified Public Transportation

Business Wire

BEIJING -- November 08, 2012

You may have missed it; a break-through announcement on November 4^th out of
Beijing China – yes, the very manufacturer that made it possible for global
cell phone carriers to offer FREE mobile phones with a service contract
(commoditizing the cell phone industry). BYD has now launched a program that
essentially makes electric taxis and buses FREE in China – Yes, free in the
same way cell phones are free. BYD and China Development Bank will facilitate
the rapid adoption of electric vehicles by Chinese municipalities with the
introduction of their “Zero Down, Zero Effective Cost, Zero Emissions” program
aimed at the Chinese taxi and bus market. They have challenged fleet managers
to re-look at monthly operational savings as a way to reduce and spread out
the price difference of up-front costs associated with new electric vehicle
purchases across several years. The financial project administrated by the
China Development Bank and others now total over 30 Billion RMB (~$4.6B USD)
in credit and will allow buyers to finance 100% of the purchase price with no
money down, paying a lease rate that effectively costs LESS than regular
monthly operational expenses (see the accompanying charts). This chart
displays the “effective cost” when driving the BYD 5-passenger, e6 Taxi. If
the vehicle is driven enough, the vehicle payment will be entirely offset;
making the effective cost of the lease Zero (now driving EVs are not only
environmentally friendly with zero direct emissions, but the savings are
greater than the monthly payment)!

                         BYD e6 MONTHLY PAYMENT                                  $550                 
                                              EFFECTIVE PAYMENT CHART*                        
              Miles     DAYS DRIVEN                       NOTE: Bold numbers are savings beyond payment (car is free)
              per       1        7        14       21       25       28       29       30       31    
              1         ($550 )     ($549 )     ($549 )     ($548 )   ($548 )     ($548 )     ($548 )   ($547 )     ($547 )
              31        ($546 )     ($520 )     ($491 )     ($461 )     ($445 )     ($432 )     ($428 )     ($423 )     ($419 )
              63        ($542 )     ($491 )     ($432 )     ($373 )     ($339 )     ($314 )     ($305 )     ($297 )     ($288 )
              94        ($537 )     ($461 )     ($373 )     ($284 )     ($234 )     ($196 )     ($183 )     ($170 )     ($158 )
              125       ($533 )     ($432 )     ($314 )     ($196 )     ($128 )     ($78  )     ($61  )     ($44  )     ($27  )
              156       ($529 )     ($402 )     ($255 )     ($107 )     ($23  )     $41         $62         $83         $104
              188       ($525 )     ($373 )     ($196 )     ($18  )     $83         $159        $184        $209        $235
              219       ($520 )     ($343 )     ($137 )     $70         $188        $277        $306        $336        $365
              250       ($516 )     ($314 )     ($78  )     $159        $294        $395        $429        $462        $496
              281       ($512 )     ($284 )     ($18  )     $247        $399        $513        $551        $589        $627
                                    * EV savings delta assumes $.10/KWh electricity, $4.50/gallon

China’s concerns about economic recovery coupled with environmental pollution,
and rapidly rising fuel costs have led to a social consensus about the
national imperative to develop electrified transportation platforms. China’s
public fleets now have over 500,000 bus rapid transits and over 1.2 million
taxis which may only constitute 1.7% of the total number of motor vehicles,
HOWEVER, they constitute 27% of fuel consumption and total vehicle emissions!
There is an urgent need for cleaner public transportation solutions; however,
the initial costs of purchasing clean-energy vehicles have long been cost
prohibitive. As a leader in new clean energy vehicles, BYD has successfully
launched commercial operations of scale in locations such as Shenzhen, Xi'an,
Baoji, Shaoguan, the Netherlands, Singapore, the United States, Columbia,
Denmark, Germany and London in the U.K. A fleet of 300± BYD e6 pure electric
taxis have been operating in Shenzhen for two years and have logged over 26
million kilometres (~16 million miles). Miles logged by a single taxi is
approaching 240,000 kilometres (~149,000 miles), equivalent to more than 10
years of service mileage for a normal private-party car. Similarly, the 200
pure electric BYD eBuses operating in Shenzhen have an accumulated mileage of
over 10.5 million kilometres (~6.5 million miles). Augmenting this solid fleet
experience, BYD has now announced cooperation with several local enterprises
in Tianjin and Yunnan as well as other cities globally to manufacture and
promote electric public transportation and to speed EV adoption and
acceptance. The “Zero Down, Zero Effective Cost, Zero Emissions” initiative
removes the financial barriers, speeding the electrification of public
transportation fleets.

“Zero Down” literally means that customers will not need to pay the purchase
price of the vehicle or a down payment at time of vehicle delivery – customers
only pay the monthly instalments. Because the price of electricity is so much
lower than that of petroleum, the cost savings from monthly taxi usage far
outweigh the electric vehicle monthly fees. In Shenzhen for example, the BYD
e6 taxi (after subtracting the 60,000 RMB or ~$9300 USD government subsidy and
60,000 RMB ~$9300 USD local subsidy) costs about 180,000 RMB (~$28,000 USD). A
Shenzhen taxi travels an average of 450 Km per day (~280 miles) and operates
353 days a year (taxis average one day downtime per month due to service). It
is estimated that the average fuel a taxi consumes is about 9 litres of petrol
per 100km (~26 mpg), and the price of petrol is 8 RMB per litre (~$4.50/gal).
The e6 pure electric taxi consumes 26 KWh per 100km (EPA: 3.8 KWh/ mile or
88.5 mpge), and the average price of electricity is 0.66 RMB (~ $0.10/ KWh);
so each electric taxi saves 247 RMB (~$38 USD) per day, or 7166 RMB (~$1103
USD) per month….BUT the BYD e6 5-year-lease rate in Shenzhen is only 3576 RMB
(~$550 USD) per month! Customers are cash-flow positive (with 3590 RMB extra
in the bank) from the first month they lease a car with “Zero Effective Cost”!
If the taxi runs for 5 years, the total savings is 326,400 RMB (~$50,215 USD)
– this is pure profit.

       Project         Gasoline      BYD e6          ROI compared
                                Taxi            Electric Taxi     to Gas
              Operating       563,760 RMB   133,803 RMB     429,957 RMB
              over 5 years    ($86,732      ($20,585 USD)   ($66,147
                                USD)                              USD)
              Price of          100,000 RMB     180,000 RMB       -80,000 RMB
              Vehicle         ($15,385      ($27,692 USD)   (-$12,308
                                USD)            after subsidy     USD)
              Purchase Tax      8,547 RMB       15,385 RMB        -6,838 RMB
                              ($1315 USD)   ($2367 USD)     (-$1052 USD)
              Interest          0               16,673 RMB        -16,673 RMB
              Incurred                      ($2565 USD)     (-$2565 USD)
              Savings in 5                                326,447 RMB
              years                                               (~$50K)

This green vehicle initiative not only provides significant operational
savings and economic recovery for public transport and taxi companies, but
also brings a substantial social value. The “Zero emissions” and zero direct
city pollution can be very significant. An e6 electric taxi saves 14,120
litres (~3816 gal) of fuel per year, with 32 tonnes fewer CO2 emissions even
when offsetting the 80% Chinese coal-electric generation contribution. If 1.2
million taxis in China were all replaced by pure electric vehicles, in one
year, 169 million litres (45 million gal) of fuel could be saved, and CO2
emissions could be reduced by 38.62 million tonnes! This number only goes up
as China transitions more and more to green electric generation sources (with
Hydro, Geo, Wind and Solar generation). To support the scaling up of electric
vehicle use, BYD will partner with electricity grid companies to develop the
needed infrastructure, distributed-smart energy storage and provide planning
and technical support for the development of charging stations. Analysts are
now saying: “pure electric vehicles as the mainstay of public transportation
are finally coming to fruition in China. With this new break-through financing
which clearly demonstrates the substantial economic value and social benefits,
new energy vehicles can achieve mass-adoption in a relatively short period of
time.” Readers should take note: In 2000, when US carriers began offering the
first “free-phone” offers, cell-phone penetration in the US was only 10%. In
only seven (7) years time, with lower-competitive, cell-phone prices (thank
you BYD) and this wide-spread new financing model for “free phones” in place,
penetration raced to 98%! History is about to repeat itself!

About BYD

BYD is ranked #1 at the top of Bloomberg’s and Business Week's 2009 Tech 100
) and is the leading manufacturer of advanced, environmentally-friendly
battery technologies like the BYD’s Iron Phosphate battery used in BYD
electric vehicles and electric buses. BYD’s solar panels and LED Lighting
systems have CEC, TUV/CE and UL listings, and the company enjoys rapid growth
in consumer electronics space and electrified transportation sector
manufacturing under its BYD brand. BYD is the fastest-growing Chinese
automotive and green energy technology enterprise. The Company trades on the
Hong Kong Exchange (HKE) under the ticker numbers (HK.0285 – BYD Electronics)
and (HK.1211 – BYD Company Ltd.), as well as on the Shenzhen Stock Exchange
under the ticker number (002594 - BYD Company Ltd.). For more information,
visit, or email


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